For Oracle, Verizon Cloud, which launched in October and is in beta, the partnership means more distribution. Verizon Cloud will be competitive on pricing, but won't be drawn into a price war. Instead, Verizon Cloud's main pitch is that it will handle enterprise workloads, comply with regulations and give customers control over virtual machine provisioning.

Verizon noted that it will continue to expand partnerships and the ecosystem around its cloud offerings.

The telecom giant is pushing into cloud services and actively targeting enterprises that currently use Amazon and Rackspace.